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Kent Redding

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Displaying blog entries 191-200 of 212

Big Plans for East Austin

Thursday, July 26, 2007
by Kent Redding & Terrill Fischer

One of the old Austin landowners, Richard Kooris has some big plans for East Austin. He is going to build a big Mixed Used Condo project on East 5th St. called the Block One. Kooris is going to build 140 Condos in this projects. The main pricing goal is to keep the costs at less than $300 per square foot, with the most expensive units under $500,000. 

We are seeing more people that are finding the area east of Interstate 35 as a viable alternative to downtown’s higher prices. If someone wants real urban living as close as possible to Downtown Austin, then this is great location because of the area’s restaurants and diversity make it an alluring place to live.

More and more home buyers who want to be located central because it’s all the easy access in terms of transportation and future transportation. East Austin is just two or three minutes away from downtown.

Below is the Austin American Statesman article on this development.

By M.B. Taboada 
AMERICAN-STATESMAN STAFF
Thursday, July 26, 2007

Richard Kooris, a longtime East Austin landowner and developer of the Sixth & Brushy condos, has a more ambitious plan on his plate: a condo project on E. Fifth St.

The vertical mixed-use project, Block One, will include retail, offices and up to 140 condominiums. The development will be bounded by East Fifth and Sixth streets, San Marcos Street and Medina.

 An adjacent half-block of Medina is being reserved for a park.Kooris is seeking zoning for the vertical mixed-use project today before the City Council. The zoning typically means retail on the bottom floor and office and residential housing on top floors.

In June, Kooris wrapped up construction on the Brushy lofts, on the northeast corner of East Sixth and Brushy streets. The project has 18 residential units and six retail units.

Kooris also founded 501 Studios, a restored historic warehouse at the Interstae 35 frontage road and East Fifth that includes offices, studios and a cafe. Kooris was a pioneer in revitalizing East Austin, buying the building on East Fifth Street in the 1970s for his film production company, which is still in operation.

He hopes Block One will be another boost to those efforts. “We’ve been revitalizing the area since 1976, and we’re continuing that effort,” he said. “I’m hoping that the area will continue to restore itself and hoping for more people living in the area and that it turns into a good urban neighborhood.”

Kooris hopes to break ground on the condominiums in late spring or early summer 2008 and to complete the project in late 2009. Kooris is aiming to make Block One an environmentally friendly project with water recycling, rainwater harvesting and high level of thermal insulation. 

Developers Perry Lorenz and Larry Warshaw sold Kooris the property. Warshaw said he is confident in Kooris’ plans, partly because of his other nearby properties.

Most of the units will be one- and two-bedrooms, but Kooris expects to build several three-bedroom units. Pricing has not been set. Kooris said his goal is to keep costs at less than $300 per square foot, with the most expensive units less than $500,000. 

 “This project is aimed more at the middle of the market,” he said. “This is not a luxury project.” Still, the units will have finished ceilings and more finished surfaces and trim elements than pure industrial lofts, Kooris said.

The project will be within walking distance of at least one future rail stop when Capital Metro’s commuter rail opens in late 2008.

 

 

What Isn’t Covered By Your Homeowners Insurance

Monday, July 23, 2007
by Kent Redding & Terrill Fischer

Insurance Commissioner Survey Shows Lack of Awareness Among Consumers When it Comes to Their Homeowners Policies
 

Insurance Commissioner Survey Shows Lack of Awareness Among Consumers When it Comes to Their Homeowners Policies

A large percentage of U.S. homeowners mistakenly believe that standard homeowners insurance protects them from a wide array of perils, according to new research by the National Association of Insurance Commissioners (NAIC). In fact, typical property and liability policies don’t cover home damage from floods, earthquakes, water line breaks, termites, mold, and several other perils.

The survey found that 33 percent of U.S. heads of household, who own a home and have homeowners insurance, incorrectly believe flood damages would be covered by a standard homeowners or property and liability policy, despite extensive media coverage on Hurricane Katrina victims whose claims were denied because they lacked flood insurance.

“Many homeowners learned the hard way that their insurance policies did not provide flood protection,” said Walter Bell, NAIC President and Alabama Insurance Commissioner. “As we enter the 2007 hurricane season, we strongly encourage consumers in flood–prone areas to check whether they are properly covered.”

According to the NAIC, flood insurance polices generally are available from the National Flood Insurance Program (NFIP) and are often sold by agents that sell homeowners policies.

“There are some limitations in flood insurance polices that differ from standard homeowners policies,” Bell said. “Excess flood insurance is often available from private insurers when people seek to insure high–value homes that exceed the limits offered by the NIFP.”

WHERE DO YOU FIT IN?

The NAIC survey also revealed other homeowner misunderstandings relating to common loss situations — none of which are covered by standard homeowners insurance policies — such as:

68 percent think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered. 
51 percent think damages from a break in the water line on their property supplying water to their home are covered.
37 percent think damages due to a break in the sewer line on their property that connects to their municipal sewer system are covered.
35 percent think damages from earthquakes are covered.
34 percent think damages from mold are covered.

31 percent think damages from termites or other infestation are covered.
22 percent think pets stolen from or injured on their property are covered.

“Many homeowners could be seriously harmed financially by misunderstandings about their insurance,” Bell said. “It’s critical that consumers look closely at their policies and ask their insurance agents detailed questions to become fully aware of what is, and what is not, covered.”

The NAIC survey revealed another type of potential consumer misunderstanding.  Twenty–four percent of respondents indicated their policies insured their homes for the actual cash value, while 64 percent said their policies covered the replacement cost.

Another 12 percent said they did not know which type of coverage — actual cash value or replacement cost — they purchased.

Actual cash value is the amount it would take to repair or replace damage to a home and its contents after depreciation. Replacement cost is the amount it would take to replace or rebuild a home or repair damages with materials of similar kind and quality, without deducting for depreciation. 

“It’s important that consumers understand this distinction,” Bell said. “In the event of a covered loss, an actual cash value payout could be thousands of dollars lower than a benefit calculated at the replacement cost.”

The NAIC survey also uncovered a growing concern among homeowners about being sued. Twenty–eight percent of respondents reported they were more concerned today than they were five years ago about being the target of a lawsuit. 

“Consumers can better protect themselves from lawsuits by adding umbrella liability coverage to their homeowners policy,” Bell said. According to the NAIC survey, a majority of homeowners — 63 percent — lack this umbrella coverage.

The NAIC provides extensive information, tips and considerations regarding homeowners insurance on its consumer education Web site, Insure U (www.InsureUonline.org). The entire site is also available in Spanish (www.insureuonline.org/espanol).

Insurance Tips for Homeowners from the NAIC’s Insure U Web Site

Add insurance coverage as you enhance the value of your home and acquire expensive possessions, such as furniture, computers, stereos and televisions.

Alert your insurance company when making any major home improvements — usually anything more than $5,000. Also, update your homeowners insurance policy to reflect the new enhancements and prevent being underinsured.

In maintaining your residence, realize that you are liable for things that happen on your premises. Keep in mind that in many states you could be held legally responsible for the actions of anyone who drinks in your home and then has an accident in your house or after leaving it. Your policy should protect you against lawsuits due to these types of liability issues.

Backyard items, such as a trampoline or pool, may require you to increase your liability coverage through an umbrella policy that protects you in the event that someone is injured while on your property.

As you acquire more valuables — jewelry, family heirlooms, antiques, art — consider purchasing an additional “floater” or “rider” to your policy to cover these special items. They’re typically not covered by a basic homeowners or renters policy.

It’s a good idea to make an inventory of all of your personal property, along with a photograph or video of each room. Also, save your receipts for major items and keep them in a safe place away from your house or apartment. That will make it easier if you need to file a claim.

Dear Kent – Are we building equity or eating equity? - Trevor

Monday, July 23, 2007
by Kent Redding & Terrill Fischer

Dear Kent – Home prices in Austin feel like they are continuing to rise, but so do mortgages. Are we building equity or eating equity? - Trevor

Slipping.

I’m no economic rocket scientist, but according to the Federal Reserve at the end of the year 2000, home mortgages totaled $4.81 trillion, and our homes were collectively worth $11.42 trillion — which meant that we had a collective 58% equity, 42% debt. (From the Federal Reserve Flow of Funds report, table B.100 which shows balance sheets of households including home equity lines of credit)

At the end of the first quarter of this year 2007, the home mortgage totals were $9.8 trillion, and our homes collective net worth was $20.8 trillion — that equates to a collective 53% equity, 47% debt.

So Americans are cannibalizing their homes by slowly siphoning their equity. If the trend continues on its current path, in another 7.5 years, the glass (house) will be more than half-empty. In other words, the percentage of debt on our homes will be more than 50%.

If a buyer just bought a house and put down 10%, 15% or 20%, they may think “so what, 50% equity looks pretty good to me!” but it’s a disheartening American trend. The payments we make on those mortgages include interest costs, money that we could be better used in other areas like educating our children, starting a new business, assisting those less fortunate, preparing for retirement and so on.

Thanks, Trevor, for the question!

Austin Housing Market - Mid 2007 Report

Friday, July 20, 2007
by Terrill Fischer & Kent Redding
According to Mark Sprague, Austin area partner for Residential Strategies, Inc (RSI) the Austin area new homebuilders continued to slow new home starts in the Second Quarter,
2007 in response to slightly weaker market demand. Builders started 3,367 units during
the period compared to 4,295 units for the same period one year ago (2Q06). As a result,
the annual new home start rate declined to 14,568 units, off 6% from 1Q07 and down
12.6% from one year ago. “Builders have reported to us that buyer traffic under $200K
remains sluggish” reports Mark. “The $250-600K price points remain strong, but not as frothy as in recent quarters.”
 
New home closings declined during the quarter after hitting a new record at the end of
1Q07. The annual rate dipped to 15,556 units from 16,271 units, down 4.4%. Closings
continue to outpace starts. “The big builders’ attitude toward the Austin market remains
cautious” notes Sprague. “While Austin is clearly out-performing most other markets in
the nation, builders are being careful not to initiate too much spec inventory.”
 
The National Association of Home Builders reported that in May, 2007, the national
median length of time that a completed home was on the market was 5.7 months. In
contrast, Austin’s finished vacant new home inventory stood at 2,694 units, a 2.08 month
supply. RSI considers a 2.50 month supply to be the maximum acceptable level of
finished inventory. “Builder discipline has been paramount to the health of Austin in
recent quarters” observes Sprague. “The fact of the matter is that Austin currently is not
experiencing the pain of over-building that is prevalent in most parts of the U.S.”
 
While the reduction in start activity heralds a more sober time for the building industry, it
should hardly come as a surprise in the wake of revelations of challenges in the subprime
market. “The extension of mortgage credit, especially at the lower-end of the housing
spectrum, over-stated housing demand levels throughout Texas” reflects Sprague. “Now
that the rules regarding mortgage underwriting have changed, buyers with the weakest
credits have effectively been removed from the buyer pool.”
 
Still, the news for Austin homebuilders remains relatively positive compared to most
other markets and the nation as a whole. While new home closings were off 4.4% vs.
1Q07, the annual closing rate is actually up 886 units (6%) vs. one year ago (14,670
annual closings 2Q06 vs. 15,556 closings 2Q07), the peak of the national market. In
contrast, national new home sales for May were 15.8% below a year earlier as stated by
the U.S. Commerce Department in a report released 6/26/07.
 
“The strength of the market remains at the upper-end of the price spectrum” reports
Sprague. Annual new home closings over $300K climbed slightly from 3,534 at the end
of 1Q07 to 3,556 at the end of 2Q07. Especially noteworthy was that the annual closings
rate for new homes priced over $1million increased from 263 units to 294 units for the
period.
 
Conversely, new home closings under $200K fell from 8,159 units to 7,481, down 8.3%.
“The decline in closings under $200K can be directly attributed to the changes in the
sub-prime market” notes Sprague.
Although the vacant lot supply declined from 26,966 lots to 25,889 lots over the past
quarter, the month supply of lots edged up slightly from 20.9 months to 21.3 months due
to the slow-down in start activity. Currently there are 6,206 lots under development.
 
The Austin market drivers remain in good shape. Net non-ag job formation (CES) for the
12-month period ended May, 2007 was 29,400 jobs. While the 30-year mortgage rate
(Freddie Mac) has edged slightly higher during June, climbing from 6.42% (May 31,
2007) to 6.69% (June 21, 2007), long term the trend remains for rates to stay below 7%.
 
“Austin remains a vibrant market” reports Sprague. “While the area is not immune to the
negatives of the national housing market conditions, we continue to see positive signs for residential growth. --- June 28, 2007 Press Release - Residential Stategies, Inc.

Get Organized!

Thursday, July 19, 2007
by Terrill Fischer & Kent Redding

One of the challenges of a service driven real estate professional is to get and stay organized.  I have found ActiveWords, SnagIt and MindGenius to be tremendous tools to assist in this area. 

MindGenius 
This application is for mind mapping, which is one of the simpliest to organize your thoughts, take notes, plan something, or just brainstorm. You can easily transport your mapping to Word or othe document programs.

SnagIt
I often find myself taking screenshots by using the “Print Screen” key, but once you use SnagIt you will never be happy with the old "Print Screen" process. You can capture a selected region of the screen, an entire scrolling window, and many other capture profiles. You can even have SnagIt record a video of your screen. You can have it delay the capture for a few seconds while you click a dropdown menu, and you can choose to have the cursor showing or not. Once the screenshot is captured, it goes into the SnagIt Editor, where you can easily annotate it with arrows, circles, callouts, text, and many other choices. SnagIt is particularly useful for communicating with other people such as a web developer, a marketing person, or a tech support person, showing them exactly what needs to be fixed or changed. It’s fantastic for communication and writing procedures.

ActiveWords 
ActiveWords allows you to create your own computer shortcuts, that work anywhere on your computer. It allows you to quickly paste blocks of text, open folders, open documents, launch programs, and go to specific web pages. You trigger the shortcuts by typing the ActiveWord that you choose, and then typing a trigger key, preset at F8. You can create text substitution shortcuts to plug in preconfigured blocks of text anywhere you like. For example, you could set up an ActiveWord "Ten Commandments"  and it would paste the entire Ten Commandments where you want it at any time. I use it to type my address and phone numbers, among many other things. I have documents I like to access quickly, like my collection of famous quotes, so I have it open by just typing “quotes” from literally anywhere I am working. I can open a browser and view my blog by just typing “blog.”

Cool South Austin Condo Development Adjacent From Zilker Park

Saturday, July 14, 2007
by Terrill Fischer & Kent Redding

Another South Austin Condo project is underway on Barton Springs Rd. called
Barton Place.

The developers are still in the design process, early stages indicate a “Hill Country Modern” look and feel which will be unique to South Austin. See an initial rendering at http://www.bartonplaceaustin.com. BartonPlace will blend the urban location with the natural pecan grove setting. Amenities will be designed for people who live active and healthy lifestyles.

BartonPlace floor plans and pricing will be released before they begin accepting earnest money contracts. Preconstruction pricing cannot be set until the building design is nearly complete. They anticipate building between 240 and 280 residences. The final count will be based upon the final size of each residence.

Construction will begin during the first half of 2008 and will take 14 to 18 months to complete. The floor plans will be available by the end of 2007.

Many of the Residences at BartonPlace will have magnificent views of Austin’s Downtown Skyline, Zilker Park and Town Lake. There will be many courtyards, green spaces and meandering walk-ways throughout the development, creating beautiful views from most of the Residences at BartonPlace.

To make a reservation you can download the reservation agreement here: http://www.bartonplaceaustin.com/pdf/BartonPlaceReservationInformation_2007.pdf

Austin Area Office Market Is Robust

Wednesday, July 04, 2007
by Terrill Fischer & Kent Redding

Central Texas’ strong job growth, which was at a 4.1 percent annual rate in May, continues to fuel demand for office space in a tightening market where several new projects are under construction. Those projects will add more than 1.3 million square feet of space this year. Regional economic development officials are working with more than 100 companies that are scouting Central Texas for possible expansion or relocation.

The Austin-area office market continued its healthy run in the second quarter, with rents for top-tier space hitting their highest level since early 2001, according to Oxford Commercial. Though vacancies for first-class space rose from the previous quarter, when they reached their lowest level in six years, they were still down from the same year-ago quarter. Rents for Class A space averaged $29.52 per square foot in second quarter 2007, up 23 percent from $23.92 a year ago. Those companies include several that could bring between 500 and 1,000 employees, said Dave Porter, senior vice president of economic development for the Greater Austin Chamber of Commerce.

Austin Real Estate Market Listings Increase

Tuesday, June 26, 2007
by Terrill Fischer & Kent Redding

For the 11th week in a row, we still see an increase in the number of new listings coming on the Austin market.  The number of pendings and sold units actually decreased a little recently.  Pendings decreased by 10% while the number of sold units decreased slightly by 2.70%.

The average sales price for this past week increased by more than 15% over last year, giving us an average sales price of $277,164 over last years average sales price of 239,887.

What this shows is the market is going up still. May, June and July are typically when the most buyers are in the marketplace. So if homes are priced right they will move quickly. As always staging and pricing are important factors in getting a home sold for the most money and quickly. I am still suprised when I go out and preview homes how many aren’t staged or in good condition. Buyers are saavy enough to notice this and will bypass these homes unless they are really below the market.

Austin Texas - Fitness, Economy, Jobs, Film, Live Music....what's the big deal?

Sunday, June 24, 2007
by Terrill Fischer & Kent Redding

As a top real estate team in Austin we are often asked by relocation clients to share with them about our city....

Named after Stephen F. Austin—the Father of Texas—Austin is an eclectic city combining down-home charm with bustling vitality. Austin, the state's capital, boasts an impressive resume: 2nd Best Big City in "Best Places to Live" by Money magazine, the "Greenest City in America" by MSN, the 2nd-fastest growing city in the U.S., a Top 25 -Fitest City according to Men's Fitness magazine and the nation's best-read city.

 

According to the demographer for Austin, the 2005 population estimate was 690,252. The city is the cultural and economic center of the Austin-Round Rock metropolitan area with a population of 1.5 million.

 

Austin is also called the "Live Music Capital of the World," highlighted by the annual South By Southwest (SXSW) festival in March—a week-long event featuring hundreds of diverse bands. In addition Austin continues to make a national splash in the film industry with the very well received "Austin Film Festival".  As for dining, Austin is said to have more restaurants per capita than any other U.S. city. Popular attractions include the 220-acre Wild Basin Preserve, the popular McKinney Falls State Park, and Mt. Bonnell, which overlooks Lake Austin. Dubbed "The Silicon Hills," Austin is a high tech mecca thanks to Dell Computer, IBM, Motorola, AMD, Freescale and other companies. The city is also home to the University of Texas, Concordia University, St Edwards University, and Austin Community College.

Keeping it Weird.....Over the years, many Austinites have also adopted the unofficial slogan "Keep Austin Weird"; this refers partly to the eclectic and progressive lifestyle of many Austin residents, but is also the slogan for a campaign to preserve smaller local businesses and resist excessive commercialization.

Call us anytime....we are always happy to "Talk Austin".

Texas Surpasses National Home Appreciation Rate

Thursday, June 21, 2007
by Terrill Fischer & Kent Redding

According to recent figures from the Office of Federal Housing Enterprise Oversight, home prices in Texas increased 6.8 percent during first quarter 2007, well above the 4.3 percent national average.

“Despite the national slowdown, Texas is still strong,” said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University. “There’s no reason prices shouldn't continue to rise despite the increase in foreclosures and the slowdown in transactions, construction and new home starts.”

By comparison, home appreciation slowed to 1.2 percent in California and 3 percent in New York. Nevada price increases virtually disappeared at just .6 percent. Even rapidly growing Florida and Arizona reported value increases of 4.3 percent and 5.2 percent, respectively.

Within Texas, there is a wide variation in appreciation rates in the 25 metropolitan areas. Among the state’s large metro areas, Austin and San Antonio are seeing the strongest rate increases at more than 10 percent.

Meanwhile, the energy industry is fueling strong housing markets in some smaller metros. Home prices are up more than 21 percent in Midland and 16 percent in Odessa. Victoria prices are up 8.3 percent.

Some border communities are on fire as well, thanks to a surge in government hiring and business activity. Laredo is up 16.6 percent, while El Paso is up 11.2 percent.

Displaying blog entries 191-200 of 212

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Kent Redding
Prudential Texas Realty
3636 Bee Caves Rd
Austin TX 78746
512-306-1001
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